Overstock.com (OSTK) – Bear of the Day
Source: http://www.zacks.com/commentary/11512/Overstock.com+%28OSTK%29+-+Bear+of+the+DayPosted on Thursday, July 16th, 2009 | In Market Commentary, Stocks to Watch
Contributed by: Zacks Market Commentaries (http://www.zacks.com/) -
Overstock.com (OSTK) reported a first quarter net loss of $0.09 per share, which was narrower-than-expected. The company’s sales declined 8% year-over-year.
Gross margin improved 280 basis points, which more than offset the 230 basis point increase in total operating expenses. Overstock.com reduced sales and marketing and technology expenses, but had a big increase in general and administrative expenses.
We think these results support our view that Overstock.com’s cost structure is still too high relative to its gross profit margin. We reiterate our Sell rating and $5 target price.Zacks Investment Research
Last 5 posts by Zacks Market Commentaries
- CNP & FPL Ink Pipeline Deal - Analyst Blog - November 20th, 2009
- Buffett Borrows for Rail Acquisition - Analyst Blog - November 20th, 2009
- Stone Energy Outdoes Estimates - Analyst Blog - November 20th, 2009
- Smucker's Beats, Raises Guidance - Analyst Blog - November 20th, 2009
- GameStop Meets Expectations - Analyst Blog - November 20th, 2009
Tags for this Post:
Market Commentary, Stocks to Watch, technology expenses, The Macro Trader, USD, Zacks Market Commentaries
Market Commentary, Stocks to Watch, technology expenses, The Macro Trader, USD, Zacks Market Commentaries
 About Zacks Market Commentaries (http://www.zacks.com/)
Zacks Market Commentaries |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.